China Tech Seen as a Dollar Hedge Amid Earnings Outlook and Fed Watch

UBS fund managers in Davos say China’s tech sector looks attractive as valuations are low, government support and loose policy boost its appeal, prompting investors to rotate into Chinese tech as a hedge against a stronger dollar. Rising confidence is underpinned by homegrown AI debuts like MiniMax and Zhipu AI, though the U.S. remains a tech leader in computing power. The macro backdrop is supported by cyclical demand and potential global stimulus, with expectations of rate cuts later in the year if inflation stays tame and a Fed meeting looming; Nuveen even projects tech earnings to grow faster than the S&P 500 as investors reassess equities.